in Air Transport

Chingosho warns of the threats to the LCC market in Africa

Posted 4 June 2013 · 1 Comment

As auditors question the viability of LCC Fastjet, African Airlines Association secretary general Elijah Chingosho has warned that the low-cost airline sector in Africa faces fundamental issues that threaten to block access to cheap flights for much of the continent's population.

 


Speaking at the IATA annual general meeting in Cape Town, Chingosho warned that taxes and fuel cost will damage the entire viability of the LCC model.
"Africa is a huge continent but also the poorest and the surface infrastructure is poor, so there is a need for low-cost carriers,” Chingosho said.  "The cost of doing business in Africa is a major problem because governments levy very high taxes on airlines and on fuel and there is still a limited penetration of credit cards and internet use in Africa."
There is also a lack of secondary airports which means the model that has worked in Europe is not able to be replicated in Africa. “Very few major cities have secondary airports, and where they do have they are very inconvenient and the charges are very similar to main airports," Chingosho said.
Exorbitant fuel charges are still at the heart of the problem Chingosho said. “For airlines in most regions of the world, the cost of fuel is typically around 30-35% of operating costs, but in Africa it is 45-55%. We are working to persuade governments and oil companies to reduce costs with some success, but more needs to be done,” he said

 

1 Comment for Chingosho warns of the threats to the LCC market in Africa

Kibuti

posted 5 years ago

Limited networks not to mention arising from limited open skies agreements and Legacy carrier protectionist hogging of traffic rights.

* required field

Post a comment

Other Stories
Advertisement
Latest News

Routes Africa 2018 Marketing Awards winners announced

The winners of the Routes Africa 2018 Marketing Awards have been revealed, with Cape Town Air Access the overall winner through to the final at World Routes in Guangzhou.

FIA2018: Rockwell Collins recognised by Airbus as a top performer for avionics support

Rockwell Collins has been honoured with a Customer Services Award for its avionics service by Airbus and its customer airlines at a special ceremony at the Farnborough Air Show held yesterday.

FIA2018: Africair signs PA for first Bell 407GXi in Africa

Bell Helicopter, a Textron company, has announced that Africair has signed a purchase agreement for the first Bell 407GXi in Africa.

Air Partner lion relocation flight is a roaring success

Air Partner, a aviation services group, was recently called upon to assist in the successful relocation of a lion on behalf of the Born Free Foundation.

Ethiopian Airlines selected as Dowty Propellers’ authorised repair facility for Bombardier Q400s

Dowty Propellers has announced an agreement establishing Ethiopian Airlines as an authorised repair and overhaul facility in Africa for propellers on Bombardier Q400 regional airliners.

Air Austral, Air Madagascar and Kenya Airways towards a Privileged Partnership

Air Austral and Air Madagascar have signed in Antananarivo a Memorandum of Understanding with Kenya Airways.

TAA SK0902311218
See us at
GroundHandling BT2205130918AAD2018 BTAirCargoAFA_BT220318210219AviationAfrica_BT0607280219